Correlation Between Vienna Insurance and Ametek
Can any of the company-specific risk be diversified away by investing in both Vienna Insurance and Ametek at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Vienna Insurance and Ametek into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vienna Insurance Group and Ametek Inc, you can compare the effects of market volatilities on Vienna Insurance and Ametek and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Vienna Insurance with a short position of Ametek. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vienna Insurance and Ametek.
Diversification Opportunities for Vienna Insurance and Ametek
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Vienna and Ametek is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Vienna Insurance Group and Ametek Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ametek Inc and Vienna Insurance is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Vienna Insurance Group are associated (or correlated) with Ametek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ametek Inc has no effect on the direction of Vienna Insurance i.e., Vienna Insurance and Ametek go up and down completely randomly.
Pair Corralation between Vienna Insurance and Ametek
Assuming the 90 days trading horizon Vienna Insurance Group is expected to generate 0.69 times more return on investment than Ametek. However, Vienna Insurance Group is 1.46 times less risky than Ametek. It trades about 0.4 of its potential returns per unit of risk. Ametek Inc is currently generating about 0.14 per unit of risk. If you would invest 3,043 in Vienna Insurance Group on November 5, 2024 and sell it today you would earn a total of 195.00 from holding Vienna Insurance Group or generate 6.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vienna Insurance Group vs. Ametek Inc
Performance |
| Timeline |
| Vienna Insurance |
| Ametek Inc |
Vienna Insurance and Ametek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vienna Insurance and Ametek
The main advantage of trading using opposite Vienna Insurance and Ametek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vienna Insurance position performs unexpectedly, Ametek can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Ametek will offset losses from the drop in Ametek's long position.| Vienna Insurance vs. Nordic Semiconductor ASA | Vienna Insurance vs. Fair Oaks Income | Vienna Insurance vs. MT Bank Corp | Vienna Insurance vs. Norwegian Air Shuttle |
| Ametek vs. Axway Software SA | Ametek vs. Auction Technology Group | Ametek vs. Ashtead Technology Holdings | Ametek vs. Silver Bullet Data |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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